If I'm reading the smoke signals correctly on this one, the indies are essentially getting the shaft from Apple's iCloud. In the worst-case scenario, that means an iCloud launch without critical indie licenses - but more likely, this will be a launch with inferior indie terms. Sound familiar?
Negotiations are still ongoing between Apple and various indie labels, according to our sources, a negotiation structure
based on existing iTunes deals. Merlin is waiting on the wings at this stage, and planning to enter if clearly discriminatory treatment emerges. But Merlin is showing outward signs of frustration, and almost every bit of licensing news on the iCloud involves the majors.
Separately, Merlin chief Charles Caldas has been very careful not to disclose any details on Apple negotiations to Digital Music News, though in conversations the group has expressed displeasure with the way indies are getting treated in cloud negotiations in general.
Of course, this 'cloud club' includes Google, Amazon, and Apple, of which two-thirds have bypassed major label licensing - at least initially. But even though Apple has sealed all four majors - and is reportedly dropping $150 million and substantial percentages for the privilege - the indie negotations appear to be getting less priority. And, there's no indication of a similar, bonanza-style payout for the littler guys.
This is becoming like a broken 7-inch. According to those involved in licensing discussions, major services - cloud or otherwise - typically focus on sealing the big four major labels before moving onto other rights. And, because major labels are at the front of the line, they can demand better terms - and leave Merlin (or separate indies) fighting for seconds. The end result is lower percentages, less money, delayed inclusion, or all three.
That was certainly the scenario surrounding Rdio, which launched without Merlin - and, without the content of marquee artists like Vampire Weekend, Animal Collective, and Arcade Fire. A stretching further back, MySpace Music also chose to launch without Merlin, and without significant indie content. Of course, Amazon and Google have made similar calculations, though the indies shouldn't take those situations so personally.
Comments Closed
iCloud Friday, June 03, 2011
iCloud will iFail
Maxwellian Friday, June 03, 2011
Oh please Digital Music News! It's the same old story, I'll give you that. But look at the charts, the masses demand major label content first. Business dictates that the biggest stuff should get more money.
::MW
Food For Thought... Friday, June 03, 2011
@Maxwellian, let's look at the charts. I have last week's Billboard handy.
The top 10 album chart reveals that five are signed to independently owned labels:
*Beggars/XL (owned by Martin Mills; Tyler, The Creator and Adele whose album is, admittedly, coming through Sony in the US but is independent across the rest of the globe)
*Concord (owned by Norman Lear; The Cars "Move Like This" album)
*Sub Pop (owned by Jonathan Poneman; Fleet Foxes "Helplessness Blues" album)
*Broken Bow (owned by Benny Brown; Jason Aldean's "My Kinda Party" album)
Those are precisely the type of independent labels that Merlin represents and what Paul Resnikoff is writing about here. Services - cloud or otherwise - that think indies are worth less do so precisely because they're NOT looking at the charts.
lifer Friday, June 03, 2011
@food for lies, uh, thought. How can you say with a straight face that Sub Pop, of which a significant piece is owned by WMG, is an indie. You ain't no slicker than a porcupine in a vat of lard.
@lifer Friday, June 03, 2011
LOL...you must know me. But you have it wrong about Sub Pop. It's a common mistake. Actually, Sub Pop owns a piece of WMG's distribution company ADA but WMG does not own any portion of Sub Pop.
Food For Thought Friday, June 03, 2011
So @Lifer would rather sidetrack a very important discussion about fairly compensating independent labels and artists into the tangent topic of "how do you define independent?" (yawn) or, for some reason, thinks that calling me names has something to do with the fact that - even using his definition and excluding Sub Pop as an indie STILL - 4 of the 10 albums in Billboard's top 10 were signed by and are owned for the majority of the Earth by 100% independently owned labels (@@Lifer, WMG DOES actually own 49% of Sub Pop but whatever).
Whether you count Sub Pop as indie or not, I submit that my original point to @Maxwellian stands.
4 of 10...hell, even 3 of 10 indie albums in the top 10 (when EMI has 2, Universal has 1, Sony has 2 & WMG has 2) means that "the masses" want indie music more than they want music from any particular major.
lifer Saturday, June 04, 2011
@ food. The deliberate blurring of such distinctions is a deliberate blurring of important distinctions. If obfuscation is your goal, then you are already wildly successful.
That yawn was a tired device the first time I saw it back in the sixties. It still is. Other than that I agree with your point about indies current chart impact but current charts of mostly disposable dreck do not compete with a rich catalogue.
Best wishes,
lifer (not to be confused with @lifer)
Econ Saturday, June 04, 2011
A snapshot in time tells you nothing. The trend for the last few years is away from majors.
lost john Thursday, June 09, 2011
The reality is that it's not even about market-share, it's about ease. the cloud starts with the highest volume of music that has already been deemed to have value. They are simply being the purveyors of a product in the "path of least resistance" kind of way. Uncreative? yes. Unfair? no more than most market practices.
@gpierson Friday, June 03, 2011
gary pierson
Thumbs down indeed.
@indiequick Friday, June 03, 2011
dustin shey
Of course (insert pissed face)
Econ Saturday, June 04, 2011
$25 a year? So I can stream from the cloud on my mobile device with a data plan that limits my usage?
The consumer knows a lame deal when they see one.
@jzertu Monday, June 06, 2011
Juan A. Zertuche
lo que me recuerda... buenas noches.
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